The Bank of Korea's nominee, Shin Hyun-song, has expressed his support for a central bank digital currency, suggesting that it should be the backbone of South Korea's digital monetary system, with stablecoins playing a supporting role. According to Yonhap, Shin stated that central bank digital currencies and deposit tokens can coexist with stablecoins in a supplementary and competitive manner. He emphasized the need for trust in the currency and proposed introducing a won-based stablecoin, but with a focus on maintaining regulatory compliance.
Shin also highlighted the importance of anti-money laundering and customer verification checks, recommending that stablecoin issuance should begin with regulated banks. He expressed skepticism about the potential of blockchain-based coins to improve foreign exchange efficiency, citing regulatory uncertainty and added costs. Furthermore, Shin noted that digital assets lack the core functions of traditional currency, including serving as a unit of account, medium of exchange, and store of value. His remarks align with the central bank's stance on the need for strict oversight of privately issued tokens to maintain monetary policy and financial stability.